In a note to clients following the report, Ian Shepherdson at Pantheon Macro said, "In one line: Horrible, but January will be less bad."

Shepherdson added, "January's headlines will be much less bad, but we see no prospect of near-term recovery. Remember, though, that what is hurting industry is making consumers better off by the day, which is why the labor market is so strong despite weak manufacturing. And that's what matters to the Fed."